The Palm Beach Post

INVESTMENTS, SAVINGS DEPEND ON STAGE OF LIFE
By Jeff Ostrowski

Everyone should spend prudently, save consistently and follow the other rules of financial planning.

Yet, how you apply those rules depends on your goals, age and family situation. A 75-year-old, for instance, shouldn't invest in risky growth stocks, but in low-risk bonds. A 25-year-old, however, would be foolish to pass up growth stocks for bonds.

Likewise, a young, single person with no children can do without life insurance, while a married breadwinner with a brood would be irresponsible not to have it. Here's how to apply the rules of financial planning to your situation, according to The Palm Beach Post's interviews with financial planners and the books Everyone's Money Book by Jordan Goodman and Staying Wealthy: Strategies for Protecting Your Assets by Brian H. Breuel.

Insurance: Consider long-term care insurance, which pays for home health care and nursing homes - costs that can eat into your assets. Keep in mind that premiums are pricey, but if you wait until you're sick, you probably won't be able to afford the coverage. Life insurance replaces lost income, so a retiree who isn't working doesn't need it. But don't cancel your life insurance before checking with your estate planner, says Richard Newman of Newman & Cohen Financial Management in Boca Raton. Life insurance offers certain tax advantages that can make it a valuable estate planning tool.